• Annual Report 2009
  • 4Letter to shareholders
  • 6Words from the Chairman
  • 8Our business, vision and strategy
  • 9Market overview
  • 12Operations
  • 13Reserves, resources and production
  • 16Core area - Europe
  • 21Core area - Russia
  • 22Core area - South East Asia
  • 23Other operations
  • 24Corporate responsibility
  • 30Corporate governance report
  • 36-Internal control and risk management
  • 38-Board of directors
  • 39-Management
  • 40-Risk factors
  • 41The share and shareholders
  • 44Five year financial summary
  • 45Director's report
  • 54Income statement
  • 55Comprehensive income
  • 56Balance sheet
  • 57Statement of cash flow
  • 58Statement of changes in equity
  • 59Key financial data
  • 60Accounting principles
  • 67Notes - Group
  • 84Parent company annual accounts
  • 88Notes - Parent company
  • 90Board assurance
  • 90Financial reporting dates
  • 91Auditor's report
  • 92Reserve quantity information
  • 93Definitions

Annual Report 2009

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THE LUNDIN PETROLEUM SHARE & SHAREHOLDERS Dividend policy Lundin Petroleum’s primary objective is to add value to the shareholders, employees and society through profitable operations and growth. This added value will be expressed partly by dividends paid and partly by a long-term increase in the share price. This will be achieved by increased hydrocarbon reserves, developing discoveries and thereby increasing production and ultimately cash flow and net income. The size of any dividend would have to be determined by Lundin Petroleum’s financial position and the possibilities for growth through profitable investments. Dividends will be paid when Lundin Petroleum generates sustainable cash flow and net income from operations to maintain long-term financial strength and flexibility. Over time the total return to shareholders is expected to accrue to a greater extent from the increase in share price than from dividends received. Due to the nature of Lundin Petroleum’s operations, the dividend policy is to give priority to the funding of ongoing projects, and satisfy the immediate capital requirements of Lundin Petroleum. Distribution of shareholdings Distribution of shareholdings in Lundin Petroleum as provided by Euroclear, 31 December 2009. Size categories as at 31 Dec 2009 1-500 501-1,000 1,001-10,000 10,001-50,000 50,001-100,000 100,001- 500,000 500,001 Total Numbers of shareholders 26,378 6,667 7,428 812 126 153 88 41,652 Percentage of shares,% 1.5 1.8 7.2 5.6 2.8 10.3 70.8 100.0 Share ownership structure Lundin Petroleum had 41,652 shareholders by 31 December 2009. The proportion of shares held by institutional investors amounted to 85.0 percent. Foreign investors held 56.0 percent of the shares. The 15 largest shareholders provided by VPC, as at 31 Dec 2009 Lorito Holdings (Guernsey) Ltd Swedbank Robur AMF Pensionsförsäkring Landor Participations Inc. Zebra Holdings and Investment (Guernsey) Ltd LGT Bank in Liechtenstein Ltd SEB Investment Management Fjärde AP-fonden Lundin Petroleum AB Andra AP-fonden Handelsbanken fonder Folksam – KPA – Förenade Liv Första AP-fonden Nordea Investment Funds Skandia Fonder Other shareholders Total Numbers of shares 76,342,895 12,975,718 12,187,956 12,038,956 10,844,643 5,779,083 5,662,198 4,766,090 4,490,300 4,370,305 3,873,501 3,567,478 3,079,091 2,916,995 2,879,918 152,135,453 317,910,580 Subscription capital/votes,% 24.0 4.1 3.8 3.8 3.4 1.8 1.8 1.5 1.4 1.4 1.2 1.1 1.0 0.9 0.9 47.9 100.00 Share Price 2009 Share Price (SEK) 80 Traded Volume 4,000,000 60 3,000,000 40 2,000,000 20 1,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Lundin Petroleum AB (LUPE) share price (monthly daily average) Traded daily volume (monthly average) 0 Share Price 2005–2009 Share Price (SEK) 100 80 60 40 20 0 2005 2006 2007 2008 2009 Traded Volume 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 - The 15 largest shareholders are registered with the Euroclear AB, the Swedish Securities Register Center - Lorito Holdings (Guernsey) Ltd. holds 76,342,895 shares in Lundin Petroleum. Lorito Holdings (Guernsey) Ltd. is an investment company wholly owned by a Lundin family trust. - Landor Participations Inc. holds 12,038,956 shares in Lundin Petroleum. Landor Participations Inc. is an investment company wholly owned by a trust whose settler is Ian H. Lundin. - Zebra Holdings and Investment (Guernsey) Ltd. holds 10,844,643 shares in Lundin Petroleum. Zebra Holdings and Investment (Guernsey) Ltd. is an investment company wholly owned by a Lundin family trust. Lundin Petroleum AB (LUPE) share price (monthly daily average) Traded daily volume (monthly average) 42 Lundin Petroleum ANNUAL REPORT 2009

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